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U.S. Treasuries remain nearly flat ahead of March industrial production data, FOMC member Kaplan’s speech

The U.S. Treasuries remained nearly flat on the second trading day of the week Tuesday ahead of today’s industrial production data for the month of March, due for release at 13:15GMT and FOMC member Kaplan’s speech, also due today at 18:00GMT amid an otherwise muted session that witnessed data of little economic significance.

The yield on the benchmark 10-year Treasury yield rose nearly 1-1/2 basis points to 2.565 percent, the super-long 30-year bond yields surged nearly 2 basis points to 2.980 percent and the yield on the short-term 2-year traded tad higher at 2.398 percent by 11:40GMT.

The focus in the US will be on the release of the latest industrial production data for March. Consistent with the drop in employment in that sector, growth in manufacturing output most likely will have disappointed, perhaps even posting a negative reading for the third consecutive month, Daiwa Capital Markets reported.

Nevertheless, with mining activity and utility output appearing to have picked up, total IP is still set to post a small increase following zero growth in February. The NAHB housing market sentiment survey will also be worth watching.

With the headline index having declined to a 3½-year low of 56 at the end of last year, it has stabilised at 62 in the last couple of months, slightly higher than its average in the last six months. And a similar reading is on the cards for April, the report added.

Meanwhile, the S&P 500 Futures edged tad higher to 2,919.38 by 11:45GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -60.31 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

By Debarati Bir
  • Market Data
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